The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-12-08
NATIONAL BANK SYSTEM.
TEXT OF SENATOR FARwRLL's BILL
TO PERPETUATE IT.
II Provides that Banks May Use Other
Than Government Bonds as Securi-
ties In Exchange for Their Circulat-
ing Medium.

WASHINGTON, Dec. 1.-THE following is
the full text OF the bill TO perpetuate the
national banking system, which will be
introduced by Senator Farwell as soon as
the committees are formed:
whereas, The rapid redemption Of the
United States bonds is cndangering the
perpctuity OF the national banking system
Of the United States, as provided for by
Title LNll. OF the Revised Statutes OF the
United States and the acts amendatory
thereof and supplemental thereto.
"Bc it enacted, etc, that every national
banking association which has heretofore
been organized, or may hereafter be organ
lied, under Title LXlI. of the Revised
Statutes OF the United States and the acts
amcndatory thereof and supplemental
thereto, may, in lieu OF the registered
bonds OF the United States required by
Section 3, lj9 OF the Revised Statutes OF the
United States 10 be transferred and de-
liycred 10 the treasurer OF the United
States, transfer and deliver 10 the treas
urcr of the United States State or munich
pal bonds, or any first mortgage railroad
bonds OF the United States upon which
interest has heretofore been promptly paid
and whose market or cash value is equal to
on greater than their par value, bearing
interest at a rate OF not less than per
cent. per annum. And all Of the provis-
ions OF said title, and acts amendatory
thereof and supplemental thereto, shall
he applicable, 10 far as may be,
TO the bonds herein provided for
in the same manner ~ 10 = United
States registered bonds Provided. That
the treasurer OF the United States shall
not receive such State or municipal bonds
NJ more than 20 per cent. OF their par val
tie, nor shall the treasurer OF the United
States receive any such first mortgage rail-
road bonds exceeding la total more than
the amount OF $4,000 900, nor shall he
receive them at more than amount OF 500, =
OOO, zoo, nor shall he receive them at more
than - per cent OF their par value. Pro-
yidcd further That the treasurer OF the
United States shall not receive such State,
municipal aud first mortgage railroad
bonds until such bonds shall have indored
upon them the approval OF the Secretary
OF the Treasury aud the comptroller Of the
currency.
Section .. That whenever any associa-
ton shall have deposited with the treas
are authorized by this act, circulation may
be issued thereon only In the proportion
at which they are authorized by this net 20
be received by the treasurer OF the United
States
section 3. That, whenever any as-ocia-
ton shall have deposited bonds uithc kind
authorized by this act ~ q basis Of circun-
ton, the Secretary OF the Treasury may
have plates aud dies engraved and circua-
ton notes printed, IN accordance with Sec
ton ., l12 Of the Revised Statutes Of the
United States, except that such notes shall
not purport 10 be secured by United States
bonds, but shall express upon their face
that they are secured by collateral bonds
deposited with the treasurer of the United
States. Provided: That whenever any as
ISOLATION ia existence NJ the time Of the
approval oi this act, 10 whom circulation
shall have been issued, shall desire to de-
| posit the bonds authorized by this net in
| lieu " United States bonds previously de.
posted, the Secretary OF the 1'rcRsury shall
| collect nom such association the cost and
! expenses oi making such change. inclnd.
Ing the cost Of making and engraving the
plates and dies aforesaid.
'scction 4. That section $3.50 i the Re.
NlNil NiNWlfH OF llf lnlifN states br
amended and rc-cnnclcd ~ ~ 10 read M
follows Whenever the comptroller has
become satisfied by the protest or the
waiver and admission specified in Section
i,2lb Of the Revised Statutes Of the United
States, or 10y the report provided for IN
section h,221 OF the Revised Statutes oi the
United States, that any association has re-
fused to pay It's circulating notes, DC may,
instead oi Canccling It's bonds. cause m
much Of them as may Doe necessary 10 ~.
deem It's outstanding notes 20 bo sold NJ
pablo auction in the city Of New York,
after giving thirty dlys notice oi such sale
TO the association or he may in his dis.
erection proceed in the name Of the United
States Of America, IN the proper circui,
court OF the United States % collect such
bonds as fat ~ they shall mature. Tor
any deficiency In the proceeds Of al bonds
oi mn association, when thus sold or col.
! lct,cd, 20 reimburse the United States the
amount expended in paying the circulating
notes Of the association, the United States
shall have n paramount lien upon all h.
assets. and such deficiency shall be made
ont oi such assets In preference b. any and
all other claims Whatsoever, except the
necessary COSTS and expenses Of admins
tpTiul the same "